October 27, 2014
Mark P. Fahimi
President, Trade Like Pros LLC
Power – ES
Power – NQ
Quant – ES
Quant – Gold
Quant – NQ
Quant – TF
John F. Gallwas – Founder of Striker Securities
• Mark Fahimi graduated from Toronto’s York University, Canada’s 3rd largest university, in 2000, majoring in computer science. In 2003, After Years of developing trading systems for financial companies, he rapidly became interested in Rapid growth of hedge funds and the role of automated trading systems. At the time there was Demand for quants was high and driven by multiple trends such as increasing complexity of liquid and illiquid securities and futures and need to give individual traders access to pricing and risk models. Mark gathered a team of professionals in mathematics, finance, and computer software programming, and formed Trade Like Pros LLC, located in Toronto Canada and later on 2010 the company moved to Los Angeles, California. The team’s objective; “Provide traders and frequent investors with real world fully automated quantitative trading systems and portfolios including market timing, momentum, seasonality, and valuations.” Their goal is to provide traders with scientifically designed trading systems and portfolios that could avoid crashes, have minimum drawdowns, and generate consistent returns.
John Gallwas: How do you define “Quantities trading systems” and what is your format to design trading systems?
Mark Fahimi: Quantitative trading is a scientific approach based on hypotheses and empirical testing. Wikipedia defines Quants as The Rocket Scientists of Wall Street. Quants trading systems are not limited to only sophisticated hedge funds – most techniques are also accessible to mathematicians and system developers. As financial securities becoming more complex the demand for experts who not only are knowledgeable in complex mathematics models to determine the price of the financial instrument, but who are able to enhance them to generate profit and reduce risk.
John Gallwas: What are the risk / reward ratio objectives and the expected time in the market, for your algorithmic trading systems?
We have two major trading system groups, the Power-Trading System and the Quant Trading Systems.
The risk reward ratio for our Power – strategies are Avg winning trade= $900 and average losing trade is= $480
For quant portfolios the ratio is around= $1900 and Average losing trading= $770
John Gallwas: Describe the futures algorithmic trading system you currently offer and what the reader should know about each system?
Algorithmic trading is growing rapidly across all types of financial instruments, accounting for over 73% of U.S. equity volumes in 2011 (Reuters and Bloomberg). This has been a fascinating research area at University College London, where for eight years algorithmic trading systems and an Algorithmic Trading/Risk platform have been developed with leading investment banks/funds. Trade Like Pros trading systems are different in terms of risk reward ratios and the required money to trade them.
We offer Quant strategies based on Timing, Momentum, Valuation and that open only 1 ES, NQ, or TF contract at a time and they require about $6500 to $7500 capital to trade. Whereas; our have Power strategies such as Power-ES, NQ, and TF require at least $25000 to start with. Power Trading Systems can buy up to 4 contracts in each market.
John Gallwas: Do your trading systems require periodic updating and if so is it scheduled or event driven?
Most of the systems that has been designed in the past few years are position trading systems and the holding time for a position usually varies from a couple of weeks to a couple of months, the systems do not need necessarily to be adjusted overtime since the systems have been designed in a way to stay on cash in market crashes.
John Gallwas: Do you have any new products that you can share are with us now?
Mark Fahimi: As a matter of fact, we recently finished two new systems designs for Russell 2000 mini futures (TF) and NASDAQ Mini futures (NQ). The Systems are called Power-TF and Power-NQ and they run on 60 min charts. That means the systems are more active and generate more trades compare to our other Trading Systems.